Marriott Vacations Worldwide Corp

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VAC : NYSE : Services
$76.30 | %
Today's Range: 75.87 - 76.59
Avg. Daily Volume: 337,400
07/29/16 - 4:02 PM ET

Financial Analysis


MARRIOTT VACATIONS WORLDWIDE's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry.

During the same period, stockholders' equity ("net worth") has decreased by 19.43% from the same quarter last year.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)429.95422.83
EBITDA ($mil)64.6762.88
EBIT ($mil)59.6158.39
Net Income ($mil)36.3134.04


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)165.76316.47
Total Assets ($mil)2253.552323.21
Total Debt ($mil)733.83561.13
Equity ($mil)885.821099.52


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin39.1238.53
EBITDA Margin15.0414.87
Operating Margin13.8713.81
Sales Turnover0.80.76
Return on Assets5.124.05
Return on Equity13.028.55
Debt Q2 FY16 Q2 FY15
Current Ratio0.00.0
Debt/Capital0.450.34
Interest Expense7.28.26
Interest Coverage8.287.07


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)26.9831.53
Div / share0.30.25
EPS1.261.05
Book value / share32.8334.87
Institutional Own % n/a n/a
Avg Daily Volume349231.0276138.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 28.27 for the Hotels, Restaurants & Leisure industry and a discount compared to the S&P 500 average of 25.05. To use another comparison, its price-to-book ratio of 2.30 indicates a discount versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 11.48. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, MARRIOTT VACATIONS WORLDWIDE proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
VAC 19.76 Peers 28.27   VAC 38.19 Peers 13.95

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

VAC is trading at a significant discount to its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

VAC is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
VAC 14.75 Peers 24.99   VAC 1.02 Peers 2.68

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

VAC is trading at a significant discount to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

VAC trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
VAC 2.30 Peers 11.48   VAC 34.50 Peers 18.32

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

VAC is trading at a significant discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

VAC is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
VAC 1.13 Peers 2.92   VAC 1.40 Peers 8.46

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

VAC is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

VAC significantly trails its peers on the basis of sales growth

 

 

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